Hi all, Im new to the forums and have a few questions. I filed for chapter 7 in 2005 and it was discharged November 2005. In the last 7 years I have accumulated a lot of debt and I need to file again. It's my understanding that with the new laws you must wait eight years before you can file again. Ok so here's where Im at. I'm now on social security disability and my income is 1,200 a month, dosent leave me much to pay anything except normal living expenses. I still have 5 months before I can file, as I will reach the eight years in November this year. What can I do to keep the creditors off of me, or delay them from taking action until I can re-file in November? Also when should I start this process, ie two or three moths ahead of time. Thanks for any insight ...
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Welcome to the forum. Sorry to read that over the last 5 years you got yourself into a pickle.
1. The 8 years runs from the date you filed the 2005 case NOT the date of the discharge.
2. If your sole source of income is SS and you have no non-exempt assets (or the non exempt assets are basically worthless) you are judgment proof, meaning, your creditors can do nothing to collect except harass you.
If you really think you need to file a bk, between now and the 8 year mark ignore the creditor. Even if the creditor sues you and gets a judgment, so long as the $$ in the bank is clearly from SS and you are no working nothing will happen.
Des. -
If you do not own any real estate, and your sole source of income is SSDI--which cannot be garnished by any consumer creditor, even when deposited into a bank account--there is an easy way to get those creditors off your back. And you don't need bankruptcy to do it!
Send each creditor/collection agency a cease and desist letter, making it clear that you are unemployed and on SSDI and thus unable to pay the debt. If the creditor is smart, they will write it off and sell to a JDB. If you eventually are sued, so what? The judgment won't be worth the paper it's printed on, because you don't own any lienable assets, nor have any wages or non-exempt bank accounts to garnish.Comment
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As true as this may be, it doesn't take into consideration what it takes to deal with it. CAs and JDBs don't care that the OP is unemployed and disabled. They can be unbelievably ruthless and don't always follow the rules. Not only does the creditor have to deal with the harassing phone calls, but also the embarrassment of having friends and family receive threatening calls as well. They may not legally be allowed to grab an SSDI bank account, but that won't necessarily stop them from trying, and it is up to the person being garnished to initiate the necessary proof to get the money back, and meanwhile not have use of the funds. If one is sued, then one has to deal with all the legal paperwork involved such as answering interrogatories, filing answers, etc. If these legal things are ignored, then come the threats of arrest warrants for contempt.Originally posted by bcohen View Post
I just think when giving this type of advice, it's best to give the full picture, including what one could go through by following it. Not everyone has the constitution to deal with this over and over.
Happyjack, you may not have a choice but to hope you are not sued before you can file, but it may be a good idea to talk to your attorney now.Comment
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Pj makes a good point BUT
Some here have had success in notifying the creditors of their collection proof status. GoingDown is also in AZ and has managed to avoid most collection problems for quite some time, including statute of limitations issues. He'll probably be along eventually to give his valuable two cents.
Meanwhile, OP... WELCOME to the forum! I'd start asking Legal Aid and checking into other free/cheap resources. If you have some time on your hands, you might even want to consider Pro Se filing since you'll probably be a shoo in. Lots of info here on doing that and lots of great support. Hang in there, ask q's, read read read and... Keep Smiling
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